Why is the depreciation on machinery and land been taken in the P/L ac ? Moreover since the revaluation has been done at the year end the depreciation for land should be taken into account while calculating the the P/L for the year. Please guide me through this.
Machinary wears out. So Depreciation is charged. Its obviously not the best method to measure wearing out, but its only method we have...simple and easy. land does not wear out. So depreciation is not charged on land. It is revalued every year.
Sorry my bad ! I read my question just now and there were a few typing errors. The correct question was this - Why is the depreciation on machinery and land been not taken in the P/L ac ? Moreover since the revaluation has been done at the year end the depreciation for factory should be taken into account while calculating the the P/L for the year. Please guide me through this.
